Fast Facts

• 25 year amortization schedule
• $400,000 - $5,000,000 loans (can be one loan of up to $5 million or multiple loans totaling to $5 million
• 90% loan to value on purchases and up to 85% loan to value on refinances
• Offers a 75% guaranty from the SBA, reducing the required capital and reserves a bank needs to make a loan    and enabling banks to do more lending
• No small town population restrictions

Eligibility for the 7A Loan

• Business with net worth of $15 million or less
• Two-year average net income (after Federal income tax) of up to $5 million
• 51% of more owner occupied facility

Usage:

Most business uses, including:

• Working Capital, including payment of accounts payable
• Inventory
• Seasonal financing
• Contract performance
• Export production
• Purchase of an Existing Business
• Construction of a New Building
• Purchase of Real Estate
• Refinancing existing business debt
• Refinance of Commercial Real Estate
• Leases
• Tenant Improvements
• Equipment, machinery, furniture, fixtures, supplies/materials financing

Cannot be used for:

• A non-sound business purpose
• To refinance existing debt where the lender is in a position to sustain a loss and SBA would take over that   loss through refinancing
• To effect a partial change of business ownership or a change that will not benefit the business
• To permit the reimbursement of funds owned to any owner including any equity injection or injection of capital   for the business's continuance until the loan supported by SBA is disbursed
• To repay delinquent state or federal withholding taxes or other funds that should be held in trust or escrow

SBA 7a Loan Rates

• Prime + 2% = 2.75%

SBA 7a Refinance Options

• Long term debt with a balloon
• Revolving lines of credit
• Business credit card debt that was used for business purposes only
For full details on requirements contact us at info@ibfs.org